Reuters Insider - United Technologies shares plunge on breakup news

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28/11/2018 24:00

Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=0_me7b7d6c&referenceId=tag:reuters.com,2018:newsml_OV98A839N_930&pageId=ReutersNews
Source: Reuters Insider

Description: United Technologies shares fell after it said it's separating
into three companies consisting of its aerospace, elevators and building
divisions. Fred Katayama reports.
Short Link: https://reut.rs/2DNvWDg

Video Transcript:

United Technologies shares dropped on Tuesday after it said it's separating
into three companies consisting of its aerospace, elevators, and building
divisions. It's the latest conglomerate to pursue a break-up. This comes just
days after United Technologies completed a $30 billion purchase of
avionics-maker Rockwell Collins. Reuters Correspondent Harry Brumpton.

I think there was a lot already backed in on a pretty high level of
expectation that this would happen. So there's no real surprise uptick to the
announcement really. The idea is that each of these businesses is going to be
better as pure play. They can be more focused, more agile, especially some of
these new areas like the heating ventilation, airconditioning space as a whole
has been really consolidating lately. And there's probably a lot more room to
run on that.

Other major industrial companies such as DowDuPont, Honeywell, and General
Electric have also recently shed businesses. Investors say they see more value
in the parts of these companies than in the whole